Clothes are wearing gear that provide cover of nudity for those who feel shame, as well as protection from weather and climate. Tribalwear can be crafted at a crafting spot and every other piece at the tailor's workbench. These items can be assigned and managed on the Outfits screen from the Assign screen which provides a way to exclude colonists from wearing damaged apparel that causes mood debuffs. Armor, is another kind of item that offers protection from harm. Clothing can be sold to traders at 70% market price.

If you don't have enough warm clothing for every colonist, an alert letter will show up "Need warm clothes". Non-nudists that don't have sufficient coverage will result in an alert letter saying "Unhappy Nudity". Items left exposed with no roof will slowly deteriorate until it disintegrates without a trace. Once a piece reaches zero percent, it will wear away to nothing.

Damaged apparel

Clothing when worn suffers wear and tear and loses hit points over time. Apparel becomes damaged when the wearer is injured from violence, and takes the damage it absorbs as armor.

A colonist wearing badly damaged apparel will have one of the following thoughts. These debuffs do not stack, only one is given based on the apparel with the worst condition.

HP

Thought

Debuff

20% - 50%

"Wearing worn-out apparel"

-3

below 20%

"Wearing tattered apparel"

-5

Nudity

Colonists whose legs are not covered by clothing will be considered naked and will receive the appropriate mood penalties. Colonists not happy about nudity will cause an alert to trigger prompting the player to seek suitable clothing.

Dead man's apparel

Clothing stripped from corpses is considered dead man's apparel and is noted with a D. Dead man's apparel status applies a 10% multiplier to its market value, greatly reducing its sell cost.
Colonists wearing dead man's apparel gain a persistent mood debuff as long as they're wearing it.

On Skin and Middle Layers

Resource-cheap and practical. The neolithic raiders are usually dressed in these. Offers more warmth than a button-down shirt and pants combined despite using a third of the materials, but it leaves the shoulders and arms vulnerable and can't be worn with armor.